CIC Holdings PLC. CIC Holdings PLC

Transcription

1 CIC Holdings PLC Interim Report CIC Holdings PLC For the Period Ended 30 th September 2012 Interim Report For the Period Ended 31 st March 2014

2 Corporate Information NAME OF THE COMPANY CIC Holdings PLC COMPANY REGISTRATION NO. PQ 88 LEGAL FORM A Public Quoted Company with limited liability incorporated in Sri Lanka in DIRECTORS S H Amarasekera- Chairman S P S Ranatunga - Managing Director / CEO E F G Amerasinghe R N Asirwatham R S Captain S M Enderby M P Jayawardena Prof. P W M B B Marambe SECRETARY P D S Ruwanpura AUDITORS KPMG Chartered Accountants 32A, Sir Mohamed Macan Markar Mawatha Colombo 03. LEGAL ADVISERS Julius & Creasy Attorneys - at - Law 41, Janadhipathi Mawatha, Colombo 01. Nithya Partners Attorneys - at -Law 97A, Galle Road, Colombo 03. REGISTERED OFFICE CIC House 199, Kew Road Colombo 02. CIC Holdings PLC 01

3 CIC Holdings PLC Statements of Comprehensive Income For the period ended 31st March Three months to Three months to Variance Twelve months to Twelve months to Restated Restated Rs.' % Variance % Continuing operations Revenue 1,355,880 1,530,432 (11.41) 5,827,098 5,461, Cost of sales (1,114,847) (1,080,700) 3.16 (4,360,308) (3,888,768) Gross profit 241, ,732 (46.41) 1,466,790 1,572,693 (6.73) Other income 137,135 40, , , Distribution expenses (378,203) (116,187) (843,669) (563,495) Administrative expenses (118,302) (175,850) (327.26) (744,017) (688,510) 8.06 Other expenses (158,118) (1,500) 10, (259,238) (1,500) 17, Financing costs (net) (34,835) (52,218) (33.29) (200,435) (182,907) 9.58 Tax expense 115,589 (16,607) (796.03) 44,534 (70,288) (163.36) Profit/(loss) from continuing operations (195,701) 127,890 (253.02) (202,940) 357,323 (156.79) Discontinued operations Loss from discontinued operations(net of tax) (197,848) (58,855) (644,309) (147,908) Profit /(Loss) for the period (393,549) 69,035 (670.07) (847,249) 209,415 (504.58) Other comprehensive income Net gains/(losses) on remeasuring available for sale financial assets (2,747) 3,066 (189.60) (2,747) 3,066 (189.60) Actuarial losses on retirement benefit obligations (3,980) (7,361) (45.93) (3,980) (7,361) (45.93) Revaluation surplus on land - 198,413 (100.00) - 198,413 (100.00) Other comprehensive income for the period (6,727) 194,118 (103.47) (6,727) 194,118 (103.47) Total comprehensive income for the period (400,276) 263,153 (252.11) (853,976) 403,533 (311.62) Earnings/(deficit) per share Basic earnings/(deficit) per share (Rs.) (4.15) 0.73 (670.07) (8.94) 2.21 (504.58) Earnings/(deficit) per share- continuing operations Basic earnings/(deficit) per share (Rs.) (2.07) 1.35 (253.02) (2.14) 3.77 (156.79) Dividend per share Interim paid (Rs.) Final proposed (Rs.) The above figures are provisional and unaudited. Figures in brackets indicate deductions CIC Holdings PLC 02

4 CIC Holdings PLC Consolidated Statements of Comprehensive Income For the period ended 31st March Three months to Three months to Variance Twelve months to Twelve months to Restated % Restated Rs.' Variance % Continuing operations Revenue 5,315,245 5,353,672 (0.72) 21,902,485 21,735, Cost of sales (4,339,693) (3,989,708) 8.77 (16,620,074) (16,349,544) 1.65 Gross profit 975,552 1,363,964 (28.48) 5,282,411 5,386,013 (1.92) Other income 51,328 53,307 (3.71) 577, , Distribution expenses (762,590) (498,438) (2,249,825) (1,918,402) Administrative expenses (246,878) (583,752) (57.71) (2,142,139) (2,137,003) 0.24 Other expenses (243,745) (14,669) 1, (347,215) (16,599) 1, Financing costs (net) (219,508) (353,853) (37.97) (1,371,447) (1,152,068) Share of profit of equity accounted investees (net of tax) 69,221 65, , ,716 (3.49) Profit before tax (376,620) 31,995 (1,277.12) 31, ,759 (94.70) Tax expense 100,181 (6,399) (1,665.57) (68,239) (175,595) (61.14) Profit/(loss) from continuing operations (276,439) 25,596 (1,180.01) (37,049) 413,164 (108.97) Discontinued operations Loss from discontinued operations(net of tax) (417,819) (60,422) (1,052,499) (246,530) Profit /(Loss) for the period (694,258) (34,826) 1, (1,089,548) 166,634 (753.86) Other comprehensive income Net gains/(losses) on remeasuring available for sale financial assets 850 5,801 (85.35) (2,280) 5,841 (139.03) Actuarial gains/(losses) on retirement benefit obligations (1,104) (33,575) (96.71) (1,104) (32,945) (96.65) Actuarial gains/(losses) on retirement benefit obligations-discontinued operations Revaluation surplus on land 2, ,114 (99.55) 2, ,114 (99.55) Exchange difference on translating foreign entities (1,004) 300 (434.67) 1,076 (1,210) (188.93) Tax on other comprehensive income - 1,068 (100.00) - 1,068 (100.00) Other comprehensive income for the period 2, ,708 (99.61) 1, ,868 (99.78) Total comprehensive income for the period (691,884) 566,882 (222.05) (1,088,224) 767,502 (241.79) Profit/(loss) attributable to : Equity holders of the Company (603,704) 40,323 (1,597.17) (949,514) 215,973 (539.64) Non- Controlling interests (90,554) (75,149) (140,034) (49,339) Profit /(loss) for the period (694,258) (34,826) 1, (1,089,548) 166,634 (753.86) Total comprehensive income attributable to : Equity holders of the Company (601,331) 528,208 (213.84) (951,021) 703,528 (235.18) Non- Controlling interests (90,553) 38,674 (334.14) (137,203) 63,974 (314.47) Total comprehensive income for the period (691,884) 566,882 (222.05) (1,088,224) 767,502 (241.79) Earnings/(deficit) per share Basic earnings/(deficit) per share (Rs.) (6.37) 0.43 (1,597.17) (10.02) 2.28 (539.64) Earnings/(deficit) per share- continuing operations Basic earnings/(deficit) per share (Rs.) (0.34) (0.73) 4.45 (116.40) Dividend per share Interim paid (Rs.) Final proposed (Rs.) The above figures are provisional and unaudited. Figures in brackets indicate deductions CIC Holdings PLC 03

5 CIC Holdings PLC Statements of Financial Position Company Group As at 31st March Restated Restated Restated Restated Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 ASSETS Non- current assets Property, plant & equipment 2,287,251 2,009,858 1,784,511 9,427,335 8,720,522 7,504,776 Investment property ,400 14,607 98,999 Capital work-in-progress 50, ,943 12, ,412 1,072, ,459 Deposit on leasehold property ,152 13,678 Biological assets ,366 86,262 78,737 Intangible assets , , ,017 Deferred tax assets 69, ,721 18,382 37,478 Investment in subsidiaries 734, , , Investment in equity accounted investees 36,000 36,000 36,000 1,440, , ,179 Other non-current financial assets 120, ,100 96,600 9,425 8,883 4,730 Current assets 3,298,422 3,102,534 2,544,125 11,920,830 10,874,458 9,137,053 Inventories 2,193,778 1,771,830 1,450,223 5,100,338 5,450,425 4,963,599 Trade receivables 1,383,226 2,276,380 2,035,110 3,293,276 4,999,511 4,282,234 Other receivables 327, , ,024 4,125,327 6,450,266 6,921,940 Other current financial assets 24,606 27,353 24,287 66,460 69,308 68,530 Cash in hand and at bank 186,916 95,343 52, ,648 1,021, ,602 4,115,866 4,719,897 3,901,578 13,551,049 17,990,633 16,893,905 Assets classified as held for sale 213,272 78,843 78, , ,383 78,843 4,329,138 4,798,740 3,980,421 14,040,537 18,109,016 16,972,748 Total assets 7,627,560 7,901,274 6,524,546 25,961,367 28,983,474 26,109,801 EQUITY AND LIABILITIES Equity attributable to equity holders of the company Stated capital 1,008,450 1,008,450 1,008,450 1,008,450 1,008,450 1,008,450 Capital reserves 1,016,018 1,016, ,605 1,718,941 1,737,424 1,231,163 Revenue reserves 1,071,894 2,020,640 2,026,857 4,001,327 5,028,767 5,060,352 3,096,362 4,045,108 3,852,912 6,728,718 7,774,641 7,299,965 Non-controlling interests ,410,539 1,659,508 1,683,939 Total Equity 3,096,362 4,045,108 3,852,912 8,139,257 9,434,149 8,983,904 Non-current liabilities Loans and borrowings 276, ,245 58, ,827 1,000, ,613 Retirement benefit obligations 201, , , , , ,970 Grants ,409 31,512 22,774 Deferred tax liabilities - 76,228 87, , , ,052 Current Liabilities 477, , ,849 1,769,879 1,801,031 1,390,409 Trade payables 1,296,011 1,011, ,451 4,604,820 5,836,676 6,698,369 Income tax payable ,227 39,500 76,586 Accruals and other payables 331, , ,722 1,118, , ,626 Other current financial liabilities 2,411,339 2,233,746 1,502,612 9,843,833 11,144,621 8,322,907 4,039,136 3,449,267 2,382,785 15,607,056 17,748,294 15,735,488 Liabilities classified as held for sale 14, , ,053,515 3,449,267 2,382,785 16,052,231 17,748,294 15,735,488 Total equity and liabilities 7,627,560 7,901,274 6,524,546 25,961,367 28,983,474 26,109,801 Net assets per share I certify that the financial statements have been prepared in accordance with the requirements of the Companies Act No.07 of (Sgd) P D S Ruwanpura Chief Financial Officer /Company Secretary The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board, (Sgd) S H Amarasekera Chairman 23rd May 2014, Colombo (Sgd) S P S Ranatunga Managing Director/ CEO CIC Holdings PLC 04

6 CIC Holdings PLC 5 CIC Holdings PLC Cash flow statements Company Group For the period ended 31st March Rs. '000. Rs. '000 Rs. '000 Rs. '000 Cash flow from operating activities Cash generated from/(used for) operations (Note A) 207,792 (38,378) 3,982, ,036 Interest paid (net) (301,903) (224,934) (1,552,608) (1,277,913) Retirement benefit paid (9,454) (10,008) (32,098) (24,132) Income tax paid (262) (62,133) (105,252) (190,063) Net cash inflow/(outflow) from operating activities (103,827) (335,453) 2,292,953 (1,004,072) Cash flow from investing activities Addition to property, plant & equipment (48,552) (129,270) (687,075) (773,685) Addition to capital work-in-progress (392,641) (108,960) (1,254,012) (989,674) Addition to biological assets - - (80,576) (95,935) Deposit on leasehold property (2,807) Proceeds from disposal of property, plant & equipment 87,349 17, ,155 35,472 Proceeds from disposal of assets held for sale 83,328-83,328 54,650 Proceeds from disposal of subsidiary and equity accounted investees - 129,443 - Proceeds from disposal of investments Proceeds from sale of biological assets - 98,115 90,009 Change in cash reserve due to deemed disposal - - (4,804) - Grant received ,753 Dividend received from subsidiaries 44,763 39,516 Dividend received from equity accounted investees 221, , , ,655 Dividend received from other companies 1, ,051 5,086 Investment in subsidiaries and equity accounted investees (1,200) (198,500) (1,200) (21,885) Other long term investments - (30,000) - (2,230) Subsidiary dividends to non-controlling interest - - (31,538) (22,115) Net cash outflow from investing activities (4,293) (201,588) (1,221,713) (1,499,063) Net Cash inflow/(outflow) before financing activities (108,120) (537,041) 1,071,240 (2,503,135) Cash flow from financing activities Dividends paid (94,770) (211,337) (94,770) (211,337) Capital payment on finance leases (54,486) (45,570) (235,980) (144,292) Long term borrowings obtained 323, ,000 3,365,660 3,553,147 Repayment of long term borrowings (88,540) - (2,879,656) (2,645,109) Net cash inflow/(outflow) from financing activities 85,204 (129,907) 155, ,409 Net increase / (decrease) in cash & cash equivalents during the period (22,916) (666,948) 1,226,494 (1,950,726) Cash & cash equivalents at the beginning of the period (2,087,869) (1,420,921) (8,710,424) (6,755,674) Effect of exchange rate fluctuations on cash & cash equivalents - - (13,420) (4,024) Cash & cash equivalents at the end of the period (Note B) (2,110,785) (2,087,869) (7,497,350) (8,710,424)

7 CIC Holdings PLC 6 Note A - Cash generated from / (used for) operations Profit before interest and tax from continuing operations (47,039) 610,518 1,121,096 1,449,111 Loss before interest and tax from discontinued operations (648,987) (161,169) (952,928) (196,099) Adjustments for: Depreciation on property, plant & equipment 130, , , ,048 Capital work in progress expensed ,647 Imapirment of assets 30,000-48,799 3,193 Depreciation on investment property 89 Fair value gain on investment protry (1,878) Gain on disposal of property, plant & equipment (24,481) (8,165) (17,469) (16,807) (Gain) /loss on disposal of assets held for sale (4,485) - (4,485) (8,009) Loss on share transfer-chemcel (Private) Limited ,874 - Gain on deemed disposal of subsidiary - - (451,257) - (Gain) /loss on disposal of long term investments Provision for retirement benefit 35,616 30,667 94,794 89,422 Amotisation of surplus on acquision ,489 11,106 Amortisation of deposit paid for leasehold property Provison for fall in value of investments 83,950 1, ,300 Provision for inter company receivables 73, Provision for bad and doubtful debts 212,541 7, ,126 89,670 Provision for write-down value of inventories 306,280 40, ,147 52,674 Gain from changes in fair value of biological assets - - (2,478) (13,666) Grants amortised - - (8,103) (6,015) Dividend income (267,423) (247,557) (7,051) (5,086) Net loss on translation of foreign currency ,496 2,814 Operating profit before working capital changes (119,197) 410,656 1,631,379 2,149,854 (Increase)/decrease in trade and other receivables 749,700 (422,215) 3,422,148 (382,858) Increase in inventories (849,366) (362,167) (417,800) (527,433) Increase/(decrease) in trade and other payables 426, ,348 (652,816) (751,527) Cash generated from / (used for) operations 207,792 (38,378) 3,982, ,036 Note B - Analysis of cash & cash equivalents at the end of the period Cash in hand and at bank 186,916 95, ,035 1,021,123 Interest bearing short-term borrowings (2,297,701) (2,183,212) (8,471,385) (9,731,547) (2,110,785) (2,087,869) (7,497,350) (8,710,424)

8 CIC Holdings PLC Statements of Changes In Equity For the period ended 31st March 2014 Company (In Rs.'000) Stated Capital General Available For Retained Capital Reserves Reserves Sale Reserve Earnings Total As at 1st April ,008, , ,604 (9,190) 1,253,443 3,852,912 Profit for the period , ,415 Other comprehensive income - 198,413-3,066 (7,361) 194,118 Dividends (211,337) (211,337) As at 31st March ,008,450 1,016, ,604 (6,124) 1,244,160 4,045,108 Loss for the period (847,249) (847,249) Other comprehensive income (2,747) (3,980) (6,727) Dividends (94,770) (94,770) As at 31st March ,008,450 1,016, ,604 (8,871) 298,161 3,096,362 Group Attributable to the equity holders of the company Stated Capital Foreign currency Available for Sale General Capital Reserves Reserves Reserves Reserves Non- Controlling Interest Total Equity (In Rs.'000) Balance as at 1st April 2012 as reported previously 1,008,450 1,230, (9,043) 861,598 4,222,218 7,314,386 1,686,690 9,001,076 Error correction of depreciation (2,052) (2,052) (2,052) (4,104) Deferred tax adjustment on biological assets (12,369) (12,369) (699) (13,068) Re-stated balance as at 1st April ,008,450 1,230, (9,043) 861,598 4,207,797 7,299,965 1,683,939 8,983,904 Profit/(loss) for the period , ,973 (49,339) 166,634 Other comprehensive income - 507,811 (720) 5,841 - (25,377) 487, , ,868 Transfer on disposal of assets - (830) - (147) (830) (770) (1,600) Interest payable written back ,295 20,295-20,295 Dividends (211,337) (211,337) - (211,337) Subsidiary dividend to non-controlling interest (22,115) (22,115) Change in effective holding (36,980) (36,980) (65,520) (102,500) As at 31st March ,008,450 1,737,451 (27) (3,349) 861,598 4,170,518 7,774,641 1,659,508 9,434,149 Retained Earnings Total Loss for the period (949,514) (949,514) (140,034) (1,089,548) Other comprehensive income - 1, (2,231) - (1,372) (1,507) 2,831 1,324 Realisation of revaluation surplus on disposal - (2,234) , Realisation of the capital reserve of the subsidiary - (498) Dividends (94,770) (94,770) - (94,770) Subsidiary dividend to non-controlling interest (31,538) (31,538) Adjustment to due disposal of subsidiaries - (17,847) ,715 (132) (90,613) (90,745) Changes in the effective holding of the subsidiary ,385 10,385 As at 31st March ,008,450 1,718, (5,580) 861,598 3,145,309 6,728,718 1,410,539 8,139,257 CIC Holdings PLC 07

9 CIC Holdings PLC Segmental Information For the year ended 31st March (In Rs.'000) Operating Segments The Following table presents revenue, profit information regarding the Group's operating segments. (a) Segmental Revenue Construction Industry 717, ,085 Agricultural & Livestock Industry 14,093,090 14,770,359 Industrial Raw Material 1,725,773 1,529,761 Packaging Industry 922, ,202 Consumer & Pharmaceutical 4,711,294 4,435,357 Others 1,274 3,267 Total Revenue 22,171,406 22,215,031 Intra-group sales (268,921) (479,474) Net Revenue 21,902,485 21,735,557 (b) Segmental Results Construction Industry 59,500 71,020 Agricultural & Livestock Industry 558, ,530 Industrial Raw Material 52,240 28,060 Packaging Industry 105, ,279 Consumer & Pharmaceutical (83,490) 384,300 Others (10) 20 Net Segmental Results 692,922 1,508,209 Unallocated expenses (149,690) (194,200) Other income 577, ,102 Financing costs (1,371,447) (1,152,068) Share of profit from equity accounted investees 281, ,716 Tax expense (68,239) (175,595) Profit/(loss) from continuing operations (37,049) 413,164 Loss from discontinued operations (1,052,499) (246,530) Profit/(Loss) for the period (1,089,548) 166,634 Attributable to: Equity holders of the Company (949,514) 215,973 Non- controlling interests (140,034) (49,339) Profit/(Loss) for the period (1,089,548) 166,634 Note : The above figures are provisional and unaudited. Figures in brackets indicate deductions. CIC Holdings PLC 08

10 Notes to the Financial Statements Company Group For the period ended 31st March (In Rs.'000) 1 Other Income Rent income 30,773 33,620 29,569 32,604 Divided income 267, ,557 7,051 5,086 Gain on disposal of property, plant and equipment 24,481 8,165 16,220 16,807 Gain on disposal of assets classified as held for sale 4,485-4,485 8,009 Gain on deemed disposal of subsidiary ,257 - Grants amortized - - 8,103 6,015 Sundry income 5,933 1,988 61,179 66, , , , ,102 2 Other Expenses Impairment loss on property, plant & equipment 30,000-48,799 3,193 Impairment of goodwill ,489 11,106 Provision for diminution in value of investments 83,950 1, ,300 Provisions relating to business restructuring 145, ,027 - Loss-on share transfer-chemcel (Private) Limited ,874 - Total 259,238 1, ,215 16,599 3 Financing Cost (Net) Finance cost Interest on loans 205, ,434 1,292,308 1,390,133 Interest on finance leases 8,589 12,875 57,567 47,038 Exchange loss ,826 7, , ,309 1,442,701 1,444,199 Finance income Exchange gain 6,504 46,014 13, ,711 Interest income 6,980 3,388 57,522 66,420 13,484 49,402 71, ,131 Net financing cost 200, ,907 1,371,447 1,152,068 4 Market value of shares For the three months ended 31 st March Voting Non-Voting Voting Non-Voting Rs. Rs. Rs. Rs. Highest Lowest Period end Number of Shares As at end of 31st March Ordinary Shares Non-Voting (Class X) Total ,900,000 72,900,000 21,870,000 21,870,000 94,770,000 94,770,000 6 Dividend paid 2013/ /2013 Voting Non-Voting Voting Non-Voting Rs. Rs. Rs. Rs. Interim Final Total CIC Holdings PLC 09

11 Notes to the Financial Statements Cont... #REF! 7 The Accounting Policies and methods followed in the preparation of the Statement of Comprehensive Income for the 8 9 year ended 31 st March 2014 and the Statement of Financial Position as at 31 st March 2014 are consistent with those used in the preparation of Financial Statements for the year ended 31 st March 2013 and are also in compliance with Sri Lanka Accounting Standard LKAS 34 - Interim Financial Reporting. The presentation and classification of figures for the corresponding period of the previous year have been amended, where relevant to be comparable with those for the current year. Shareholders of the Company resolved on 29th December 2010, the issue of Three Hundred and Seventy Nine Thousand and Eighty (379,080) Voting and One Million, Five Hundred and Sixteen Thousand, Three Hundred and Twenty (1,516,320) Non- Voting (Class X), Ordinary Shares (constituting approximately 2% of the issued shares as at 18th November 2010) to the eligible employees of the company under an Employee Share Option Scheme (ESOS). The shares under ESOS was priced at the average of volume weighted average market price of the Company s shares for the ten (10) market days immediately prior to the date of offer. The shares were priced as follows. Ordinary Shares - Rs Non- Voting (Class X) Shares -Rs There will be no financial assistance granted to employees with regard to the ESOS. No options were exercised as at 31 st March There have not been any significant changes in the nature of the Contingent Liabilities which were disclosed in the Annual Report for the year ended 31 st March The Company invested Rs.119 million, in a right issue of CIC Lifesciences Limited, subsequent to the reporting date.other than this, no other events have taken place which requires adjustments to or disclosure in the Financial Statements. 12 In October 2013, Archer Daniels Midland Europe B.V. ("ADM") has made a capital infusion of Rs.1.86 Bn to Chemcel (Pvt) Ltd, a subsidiary of CIC Group. As a result, the ownership interest in CIC Group has been reduced resulting an equity accounted investee in the group accounts. In addition ADM has an option to purchase the shares held by CIC Group during a period of three years starting from the date of expiry of ninety days from the completion of contractual agreement. After expiration of such period the Group will recognise the above investment as an Avaliable For Sale Investment as per SLFRS. CIC Holdings PLC 10

12 SHAREHOLDER & INVESTOR INFORMATION As At 31st March Twenty Largest Shareholders VOTING (ORDINARY) SHARES Name No. of Shares Percentage % 1 Paints & General Industries Limited 38,860, Employees Provident Fund 4,669, Sri Lanka Insurance Corporation Ltd - Life Fund 3,409, Associated Electrical Corporation Limited 2,810, Employees Trust Fund Board 2,763, Mr. S.K. Wickremesinghe 1,498, Bank of Ceylon No. 1 Account 650, Sri Lanka Insurance Corporation Ltd - General Fund 439, Mrs. K.J.M. De Silva 377, Bank of Ceylon A/C Ceybank Century Growth Fund 361, HSBC International Nom Ltd-SSBT-Russell Institutional 352, Waldock Mackanzie Ltd / Hi-Line Trading (Pvt) Limited 341, Mrs. L.K. Goonewardena 327, Trading Partners (Pvt) Ltd. 321, Colombo Fort Investments PLC 315, HSBC International Nom Ltd-SSBT-Russell Trust Company 311, Dr. H.R. & Mr. V.K.Wickremasinghe Custodian Trustees Martin Wickremasinghe Trust Fund 310, Estate of M.Radhakrishnan (Deceased) 303, People's Bank 300, Mr. G.N. Wikramanayake 265, ,989, Number of Shares Issued - 72,900,000 Ordinary Shares NON-VOTING (CLASS 'X') SHARES Name No. of Shares Percentage % 1 Employees Provident Fund 2,437, Paints & General Industries Limited 726, E.W. Balasuriya & Co. (Pvt) Ltd 632, Deutsche Bank AG as trustee for JB Vantage value E 556, Employees Trust Fund Board 479, Mrs. M.S.E.V.E.A.U. Von Stumm 399, DFCC Bank A/C No , Nuwara Eliya Property Developers (Pvt) Ltd 304, Mrs. C. Jayawardene 261, Ceylinco Insurance PLC A/C No.1 (Life Fund) 240, Mrs. K.J.M. De Silva 238, Mr. K.C. Vignarajah 218, Standard Capital PLC 210, Genesiis Software (Pvt) Ltd 194, Aruna Equity Care (Pvt) Ltd 188, National Savings Bank 183, Mr. M.J. Fernando 163, Commercial Bank of Ceylon PLC A/C No , Mrs. N.H. Abdul Husein 155, Miss. N.K.R.H. De Silva 151, ,291, Number of Shares issued - 21,870,000 Non-Voting (Class-'X') Shares CIC Holdings PLC11

13 SHAREHOLDER & INVESTOR INFORMATION Cont As At 31st March Shares held by Public Type No.of Shares % Ordinary Shares 33,991, Non Voting (Class - X) Shares 18,605, * Employee Provident Fund held 11.14%of Non- Voting shares 4 Shares held by Director's together with the members of their families Type No.of Shares % Ordinary Shares Non Voting (Class - X) Shares 40, Shares held by the Parent Company Type No.of Shares % Ordinary Shares 38,860, Non Voting (Class - X) Shares 726, Directors' shareholding together with the members of their families Ordinary shares Non-Voting (Class X) As at S H Amarasekera -Chairman S P S Ranatunga - Managing Director / CEO ,950 22,950 E F G Amerasinghe R N Asirwatham R S Captain , M P Jayawardena ,200 16,200 Prof. PWM B B Marambe B R L Fernando - Chairman (Retired on 31 st December 2013) N/A 237,942 N/A 39, ,022 40,912 79,054 7 Share Trading For the Quarter ended 31st March st March 2013 Non-Voting (Class X) Ordinary shares Ordinary shares Non-Voting (Class X) No of shares traded 756, , , ,023 No. of transactions Value of shares traded (Rs.) 36,946,930 24,053,886 56,769,904 18,948,645 CIC Holdings PLC 12

14 Review of the year This year (2013/14), CIC Holdings PLC (The Company & Group) sustained their first annual loss since While total revenue amounted to Rs billion, a decrease of Rs. 0.4 billion from the previous year s figures, the drop in profitability was substantial. The Company and Group profitability decreased from a profit of Rs. 209 million and Rs. 167 million to a loss of Rs. 847 million and Rs. 1,089 million respectively. The above losses arise from the decision that the Board took to close down and/or to dispose of several unprofitable subsidiaries or business units which had lower profit making potential in the long term and to take the aggregate of their losses to our books in the current year. As you are aware, over the years, CIC evolved from its interests in the paints and chemicals sector (eg - as local agents for Dulux paints) into a more agri-based operation. Such was the scale of this evolution that CIC became an agri-colossus, diversifying across sectors such as grain, poultry, dairy, fruits and vegetables and the value added areas of jams, juices, sauces and more. Separate companies/business units were set up to cater to this diversification. Sadly whilst at the time of their set up, all of these entities had relevance and showed promise, but over the years some companies did not show adequate long term profit potential. At the same time, though we did get a substantial payment in respect of the outstanding fertilizer subsidy payment, the cost of financing and changes in policies relating to agricultural inputs made us re-look at the manner in which we allocated our resources. In the light of this developing scenario, the Board and management spent considerable time during the financial year assessing the performance of the business units and that of its Group companies with a view to optimising the resources allocated to them. In reviewing the scope and ambit of the businesses that the Company was then engaged in, the Board set a yard stick by which each of the business units or subsidiary companies would be measured against in three years time. This gave us a reasonable view of profitability and viability going forward and helped identify the lines of business and entities that were deemed unprofitable to continue. A far ranging plan to re-structure and revamp the business was instituted the first step being the liquidation and/or disposal of non-performing entities, which have resulted in the above losses. We are also looking at cost reduction from a macro perspective rationalizing our employment processes to help reduce payroll and up productivity further. We are confident that the many hard decisions we took during the year will prove to be the right ones for the Company and the results of the Company and Group will vindicate them. CIC Holdings PLC 13